Barry Silbert Predicts 5-10% of Bitcoin Will Move to Privacy Coins Like Zcash

TLDR

• Digital Currency Group CEO Barry Silbert predicts 5-10% of Bitcoin capital will move into privacy-focused cryptocurrencies like Zcash over the next few years
• Silbert believes privacy coins offer 500-1,000x return potential while Bitcoin’s upside is limited unless the U.S. dollar collapses
• Cardano founder Charles Hoskinson confirmed Midnight’s privacy blockchain mainnet will launch in the final week of March 2026
• Major partners including Google and Telegram will support Midnight’s initial network rollout
• Grayscale launched the Grayscale Zcash Trust in 2017 and is seeking to convert it into an ETF

Digital Currency Group founder Barry Silbert made a prediction about the future of cryptocurrency investments at the Bitcoin Investor Week conference in New York City on Wednesday. He stated that 5-10% of Bitcoin capital will likely move into privacy-focused cryptocurrencies over the next few years.

Silbert explained his reasoning for the shift. He remains bullish on Bitcoin but sees limited upside potential compared to privacy coins.

The DCG CEO noted that Bitcoin’s original narrative as “anonymous cash” no longer holds true. Analytics firms like Chainalysis and Elliptic can now track Bitcoin transactions. Silbert expressed doubt that Bitcoin would ever implement privacy features despite clear demand for private digital money.

Cardano’s Midnight Blockchain Set for March Launch

Charles Hoskinson announced the mainnet launch of Midnight during a keynote address at the Consensus Hong Kong conference. The privacy-based blockchain will go live in the final week of March 2026.

Hoskinson revealed partnerships with major companies for the network rollout. Google and Telegram will serve as early partners helping to run the Midnight network. More partnerships are expected to be announced.

The Midnight NIGHT token launched in December after a large airdrop. Major exchanges including Binance listed the token. Hoskinson also introduced Midnight City Simulation, an interactive tool demonstrating the platform’s selective disclosure capabilities.

Grayscale’s Privacy Coin Investment Products

DCG subsidiary Grayscale has invested in the privacy coin sector for several years. The company launched the Grayscale Zcash Trust in 2017 as a public fund. Grayscale is now seeking to convert this trust into an exchange-traded fund.

The company previously offered a vehicle for the ZEN token. ZEN is the native asset for the Horizon privacy chain, which now operates as a Base Layer 3.

The DCG founder views privacy coins as an asymmetric bet similar to early Bitcoin investments. He allocates his portfolio to projects he considers transformative. Silbert believes these projects offer higher return potential than Bitcoin at its current stage.

Hoskinson emphasized that privacy is more complex than simple on-off switches. He criticized the approach taken by Monero and Zcash communities. Midnight aims to provide scalable privacy through rational privacy concepts, where information remains private by default but can be shared when necessary.

Silbert also addressed concerns about quantum computing threats to Bitcoin. He doesn’t believe quantum computers pose a risk to Bitcoin but noted that Zcash serves as a hedge against such threats.

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